You mean the point in time that coincided with more of the team being moved off of the Live Galaxy to work on Odyssey for the couple of years prior to it's release? And then once it was almost ready to be release it starting back up a few months before to set the narrative up?
I don't think the timescales quite work there. On the mechanical side, sure, Odyssey would have taken the bulk of the devs, but the writers, several years ahead of time even without delays? It's not like Odyssey was reliant on the resulting narrative when it did return either, if that was the only factor I'd expect them to have just kept it ticking along as it was, rather than stopping and starting.
Either way, neither of us know their true reasoning or staff allocations. My overall point changes little if Frontier decided to shelve GalNet previously because of Odyssey rather than anything else.
Now we have a serious reduction in staff once again, though for different reasons and not as extreme. We have passed Update 18 which is the last main thing most of the departed worked on, and once again there is a decline in Galnet. The next big push is for Update 19, and that will definitely need some flavour through Galnet.
As much as it is indeed a shame, I think it's pretty obvious why things are like they are.
And this is why I don't think the reasoning for the last shutdown is as relevant. I think you're suggesting that if the previous shutdown was for Odyssey, then it would always have been temporary, and that this decline also matches up to Update 19. I'm not convinced, though. The current decline started nearly two years ago - it's about plausible that Frontier would pull writers away that far in advance for a major expansion like Odyssey, but Update 19? That would require them to be remarkably confident about the contents of that update at a time when they weren't even saying which feature would be reworked, and talking about it seperately from narrative in their plans. And obviously, it didn't play out that way.
And of course, this time it's not people being reassigned. If Update 19 was such a major overhaul as to require narrative support being pulled away at least a year in advance, then it'd be a bit weird to go the opposite direction and reduce the number of writers relatively close to its release.
You're correct in that Powerplay 2.0 would massively benefit from narrative support. That just doesn't necessarily mean it's going to get it, as Powerplay 1.0 can attest to.